Major reductions are expected from an accelerated deployment of renewable generation supported by SDE+, SDE++ and other measures
Natural gas is arguably the most important energy source in the Netherlands
The largest electricity emissions reductions are expected to come from a ban on coal-fired generation, which requires coal plants to cease operating, or convert to alternative fuels, by 2030. An effective offshore wind policy framework is driving rapid deployment and aims for 49 TWh of generation by 2030. Net-metering for small-scale PV has contributed to strong residential PV deployment.
Regional Energy Strategies aim to drive emissions reductions by supporting 35 TWh of onshore renewable electricity and a transition to low-carbon heating. Local governments, in co-operation with network operators, the private sector and social organisations, are developing these strategies to resolve barriers related to costs, spatial planning, social acceptance, cost impacts and integration of renewables. The government provides technical and financial assistance for the development and execution of the strategies.
Support measures for reducing transport sector emissions include policies pushing for the adoption of zero-emission vehicles (battery electric and hydrogen fuel cell vehicles) for personal, public and freight transport. These include tax incentives that encourage zero?emission vehicle purchases and measures supporting the development of infrastructure for EV charging and hydrogen fuelling stations. The Netherlands also aims for a broader shift to a more efficient and diverse mobility sector that supports walking, biking, mobility services and other measures to reduce emissions.
As a European Union (EU) member state, the Netherlands is subject to numerous energy sector targets based on EU directives. The Dutch National Energy and Climate Plan (NECP) defines measures to support the achievement of 2030 targets for GHG emissions reductions, renewable energy and energy efficiency set under the EU Clean Energy Package. The measures in the NECP are based pri Climate Agreement.
Energy sector targets and policy
In 2018, natural gas accounted for 90% of residential heating demand, 76% of domestic energy production, 51% of electricity generation, 43% of TPES and 34% of TFC. However, Dutch energy policy is pushing to rapidly reduce the role of gas in the energy system to support the transition to a low-carbon economy and to protect public safety in relation to earthquakes caused by gas production.
The government foresees that natural gas will be an important part of the energy system through at least 2030 and that low-carbon gases will play a critical role in transitioning to a carbon-neutral energy system, especially in industry and other hard-to-decarbonise sectors. To ensure reduced emissions from natural gas while maintaining energy security, the Netherlands is executing a broad policy agenda to reduce natural gas demand and accelerate the production and use of low-carbon gases. At the same time, the government aims to leverage existing gas infrastructure to support the transport and use of low-carbon gases and to enable CCS by supporting transport and storage of CO2.
Several major policy measures have been implemented to reduce gas demand. The Natural-gas Free Districts Programme supports the transition of 1.5 million homes from gas to low-carbon heating by 2030. The Gas Act was amended in 2018 to change the existing obligation to connect new homes and buildings to the gas network into a ban on new gas connections. Numerous support programmes and requirements aim to reduce gas demand through energy efficiency or the deployment of renewables, particularly in the built environment and industry.
The Dutch Hydrogen Strategy and Green Gas Roadmap define plans to accelerate large?scale production and use of low-carbon hydrogen, and a variety of bioenergy-based gases, including biomethane. These strategies support the use of low-carbon gases across all sectors and aim to increase Dutch expertise in low-carbon gases as the country transfers away from natural gas. Biomethane production and injection into the gas grid has been expanding and several large-scale low-carbon hydrogen projects are being planned. The government is supporting accelerated deployment of low-carbon gases through dedicated research and demonstration funding. Low-carbon hydrogen and biomethane projects are also eligible for SDE++ funding.